Newsletter No 235 August 2020

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TABLE OF CONTENTS

News 3 Claude Marx: on the coronavirus crisis, consolidation and climate protection 3

Coronavirus: information for all supervised entities 3 Information of the CSSF 3 Summary of the communications by the European authorities 4

FAQ 6 Warnings 6

Warnings of the CSSF 6 Warnings published by other authorities 6 Warnings published by IOSCO 6

National regulation 7 Communiqués 7 Statistics 8

Monthly Statistics 8 Quarterly Statistics 21

Human resources 22 European/International News in July 2020 23

Single Supervisory Mechanism (SSM) - European Central Bank (ECB) 23 European Banking Authority (EBA) 25 European Supervisory Authorities (ESAs) 28 Basel Committee on Banking Supervision (BCBS) 28 Macroprudential topics and fora 29 European Securities and Markets Authority (ESMA) 30

Financial centre 33

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News Claude Marx: on the coronavirus crisis, consolidation and climate protection

Interview with Claude Marx, the Director General of the CSSF, in association with Luxemburger Wort.

Link to the interview:

https://bit.ly/31dTdbK

Coronavirus: Information for all supervised entities Information of the CSSF

On 29 July 2020, the CSSF published a circular letter addressed to all credit institutions that are not significant institutions under the SSM.

It provides an update of the CSSF policy on restrictions of dividend distributions and share buyback during the COVID-19 pandemic in view of the European texts published in this matter by the ECB, EBA and ESRB.

Furthermore, the circular letter provides guidance on the CSSF’s expectations with regard to remuneration practices.

In this context, COVID-19 FAQ 13 has also been updated.

The circular letter, as well as other publications of the CSSF relating to COVID-19 are available on the CSSF website at: https://www.cssf.lu/en/2020/05/cssfs-communications-and-initiatives-in-the-covid-19-context/

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Summary of the communications by the European authorities

On 7 July 2020, the EBA published a report, which provides clarifications on the application of the prudential framework that have been raised as a consequence of the COVID-19 pandemic. It is part of the EBA’s wider monitoring of the implementation of COVID-19 policies as well as of the application of existing policies under these exceptional circumstances. https://eba.europa.eu/eba-provides-clarity-implementation-prudential-framework-context-covid-19

On 9 July 2020, the EBA issued a call on resolution authorities to consider the impact of COVID-19 on resolution strategies and resolvability assessments. With this statement, the EBA intends to reiterate the importance of resolution planning in times of uncertainty to ensure that resolution stands as a credible option in times of stress. In addition, the EBA highlights the importance for resolution authorities to continue promoting institutions’ efforts to enhance their capabilities and increase their resolvability. https://eba.europa.eu/eba-calls-resolution-authorities-consider-impact-covid-19-resolution-strategies-and-resolvability

On 9 July 2020, ESMA published a public statement on external support under Article 35 of the Money Market Funds (MMF) Regulation. ESMA issued this statement in the context of financial markets authorities’ recent actions to mitigate the impact of COVID-19 on the EU’s financial markets, to clarify the potential interaction between the intermediation of credit institutions and the requirements of Article 35 of the MMF Regulation on external support. It also aims to coordinate the supervisory approaches of national competent authorities (NCAs) in light of liquidity challenges for MMFs in the context of the current COVID-19 pandemic. https://www.esma.europa.eu/press-news/esma-news/esma-clarifies-external-support-within-meaning-article-35-mmf-regulation

On 15 July 2020, the FSB published a report addressed to the G20. This report, delivered to G20 Finance Ministers and Central Bank Governors for their virtual meeting on 18 July, assesses COVID-related financial stability developments, details policy measures taken and sets out work to assess their effectiveness.

Since the FSB last updated the G20 in April, financial markets have continued to recover from the COVID-19 shock on the back of this decisive policy action. While improving market sentiment has lifted risky asset prices, this may not fully reflect the fact that the pandemic continues and the path of recovery remains highly uncertain. As a result, risky assets remain vulnerable to shifts in the economic outlook. https://www.fsb.org/2020/07/covid-19-pandemic-financial-stability-implications-and-policy-measures-taken-report-to-the-g20/

On 21 July 2020, the EBA published an overview of public guarantee schemes issued in response to the COVID-19 pandemic. This publication, which complements the information included in the EBA Report on the implementation of selected COVID-19 policies, aims at providing transparency to the public on the existence of public guarantees, as well as responding to the European Commission’s request for a stock-take of such guarantees. https://eba.europa.eu/eba-publishes-overview-public-guarantee-schemes-issued-response-covid-19-pandemic

On 21 July 2020, ESMA issued a Public Statement recommending coordination of supervisory action with regards to issuers’ accounting for COVID-19-related rent concessions. https://www.esma.europa.eu/press-news/esma-news/esma-recommends-supervisory-coordination-accounting-covid-19-related-rent

On 23 July 2020, the ESRB published its Annual Report 2019. This ninth ESRB Annual Report covers the year from 1 April 2019 to 31 March 2020. While that period includes the early onset of the COVID-19 pandemic, the economic and financial consequences of the COVID-19 crisis have continued to evolve

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rapidly in subsequent months. For that reason, this year’s Annual Report includes – exceptionally – the ESRB’s assessment of risks up to June 2020, so as to reflect the new systemic risks that have emerged as the European economy has endured this extraordinary macroeconomic shock. https://www.esrb.europa.eu/pub/pdf/ar/2020/esrb.ar2019~03c9997400.en.pdf?b7d33af91d34b47c897975c9bbc370cc

On 23 July 2020, following the publication of its statement on additional supervisory measures in relation to the COVID-19 pandemic, the EBA published guidelines that make available to competent authorities a special procedure for the supervisory review and evaluation process (SREP) for the year 2020. The new guidelines identify how flexibility and pragmatism could be exercised in relation to the SREP framework in the context of this pandemic. https://eba.europa.eu/eba-publishes-guidelines-pragmatic-and-flexible-approach-2020-supervisory-review-and-evaluation

On 28 July 2020, the ECB published the aggregate results of its vulnerability analysis of banks directly supervised within the Single Supervisory Mechanism. The exercise assessed how the economic shock caused by the COVID-19 outbreak would impact 86 euro area banks and aimed to identify potential vulnerabilities within the banking sector over a three-year horizon. Overall, the results show that the euro area banking sector can withstand the pandemic-induced stress. https://www.bankingsupervision.europa.eu/press/pr/date/2020/html/ssm.pr200728~7df9502348.en.html

On 28 July 2020, ESMA informed that it is working on a proposal to possibly delay the entry into force of the CSDR settlement discipline regime until 1 February 2022. This is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by CSDs and came as a request from the European Commission. https://www.esma.europa.eu/press-news/esma-news/esma-preparing-new-rts-further-postpone-csdr-settlement-discipline

On 30 July 2020, the EBA published its quarterly Risk Dashboard together with the results of the Risk Assessment Questionnaire (RAQ). The updated data shows that the impact of COVID-19 was mainly reflected in a contraction of banks’ capital ratios and profitability, the cost of risk increased, whereas non-performing loans (NPL) ratios remained stable, confirming that the impact of the pandemic on asset quality can be delayed. The EBA has also published a thematic note on leveraged finance, which highlights that the expansion of this market segment in recent years has come along with a significant easing of credit standards. https://eba.europa.eu/eba-sees-first-impact-covid-19-materialising-eu-banks’-q1-data

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FAQ On 30 July 2020, the CSSF updated question 13 of the COVID-19 FAQ.

On 7 August 2020, the CSSF published a new version of the “FAQ concerning the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment”.

On 20 August 2020, the CSSF published “Questions and Answers related to Circular CSSF 20/747”.

Warnings Warnings of the CSSF Since the publication of the last Newsletter, the CSSF published the following warnings:

− Warning concerning the website www.trendingraphs.net − Warning concerning the website https://merceralternatives.com − Warning concerning the website https://dunhillwealthadvisory.com − Warning regarding the activities of an entity named LuxisTrade Ltd

Given the significant number of fraudulent websites recently identified, the CSSF recommends you to verify whether the entity with which you would like to do business is supervised by the CSSF by using the application “Search Entities”. In case of doubt, please contact the CSSF.

Warnings published by other authorities The UK authority (FCA) issued a warning regarding the activities of an entity named Premium Systems/ Trendingraphs.

Warnings published by IOSCO Several warnings have been published on the IOSCO website at: https://www.iosco.org/investor_protection/?subsection=investor_alerts_portal

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National regulation Circular CSSF 20/749 - Legislative and non-legislative moratoria

The purpose of the circular is to amend Circular CSSF 20/741 in order to introduce the new deadline provided in the EBA Guidelines (EBA/GL/2020/02) on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis.

Circular CSSF 20/750 - Information and communication technology (ICT)

The circular implements the EBA Guidelines (EBA/GL/2019/04) on ICT and security risk management, amends Circular CSSF 12/552 and repeals and replaces Circular CSSF 19/713.

Grand-ducal Regulation of 14 August 2020 – AML/CFT

The grand-ducal regulation amends Grand-ducal Regulation of 1 February 2010 providing details on certain provisions of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended. The coordination version of Grand-ducal Regulation of 1 February 2010 is available on the CSSF website at: https://www.cssf.lu/en/document/grand-ducal-regulation-of-1-february-2010-coordinated-version/.

CSSF Regulation No 20-05 – AML/CFT

CSSF Regulation N° 20-05 amends CSSF Regulation No 12-02 of 14 December 2012 on the fight against money laundering and terrorist financing. The coordinated version of CSSF Regulation No 12-02 is available on the CSSF website at: https://www.cssf.lu/en/document/cssf-regulation-n12-02-2/.

Communiqués

Date Publications

29.07.2020 Global situation of undertakings for collective investment at the end of June 2020

25.08.2020 Global situation of undertakings for collective investment at the end of July 2020

26.08.2020 Communication related to the EBA Opinion on Obstacles

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Statistics MONTHLY STATISTICS

INVESTMENT FIRMS: INCREASE IN THE BALANCE SHEET TOTAL AS AT 30 JUNE 2020

SPECIALISED PFS: DECREASE IN THE BALANCE SHEET TOTAL AS AT 30 JUNE 2020

0

20

40

60

80

100

120

0

500

1,000

1,500

2,000

2,500

JUN

E19

JULY

19

AU

G.

19

SEP

T. 1

9

OCT.

19

NO

V.

19

DEC

. 19

JAN.

20

FEB. 20

MAR.

20

APR

. 20

MAY

20

JUN

E20

in million EU

Rin m

illio

n E

UR

Development in the balance sheet total and provisional net result of investment firms

Balance sheet total Provisional net result

0

50

100

150

200

250

300

350

01,0002,0003,0004,0005,0006,0007,0008,000

JUN

E19

JULY

19

AU

G.

19

SEP

T. 1

9

OCT.

19

NO

V.

19

DEC

. 19

JAN.

20

FEB. 20

MAR.

20

APR

. 20

MAY

20

JUN

E20

in million EU

Rin m

illio

n E

UR

Development in the balance sheet total and provisional net result of specialised PFS

Balance sheet total Provisional net result

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SUPPORT PFS: DECREASE IN THE BALANCE SHEET TOTAL AS AT 30 JUNE 2020

UCIS: SITUATION AS AT 30 JUNE 2020

NUMBER OF UCIS

FCP SICAV Other UCI / SIF

SICAR Total

Part I (2010 Law) 904 836 0 0 1,740

Part II (2010 Law) 114 129 2 0 245

FIS 309 1,098 41 0 1,448

SICAR 0 0 0 236 236

Total 1,327 2,063 43 236 3,669

01020304050607080

1,6501,7001,7501,8001,8501,9001,9502,0002,0502,1002,150

JUN

E19

JULY

19

AU

G.

19

SEP

T. 1

9

OCT.

19

NO

V.

19

DEC

. 19

JAN.

20

FEB. 20

MAR.

20

APR

. 20

MAY

20

JUN

E20

in million EU

Rin

mill

ion E

UR

Development in the balance sheet total and provisional net result of support PFS

Balance sheet total Provisional net result

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NET ASSETS OF UCIS

FCP SICAV Other UCI / SIF

SICAR Total

Part I (2010 Law) 601.875 3,181.785 0.000 0.000 3,783.660

Part II (2010 Law) 48.605 98.783 0.472 0.000 147.860

SIF 188.431 377.148 30.387 0.000 595.966

SICAR 0.000 0.000 0.000 57.710 57.710

Total 838.911 3,657.716 30.859 57.710 4,585.196

NET ASSETS BROKEN DOWN BY INVESTMENT POLICY

Breakdown by investment policy Net assets (in bn €)

Number of fund units

Fixed-Income Transferable Securities 1,363.584 3,227

Variable-Yield Transferable Securities 1,337.148 4,049

Mixed Transferable Securities 914.710 3,778

Funds of Funds 266.371 2,079

Money Market Instruments and Other Short-Term Securities 419.420 218

Cash 10.261 17

Private Equity 43.846 225

Venture Capital 2.712 29

Real Estate 90.443 321

Futures and/or Options 12.093 103

Other Assets 66.898 293

Public-to-Private 0.124 3

Mezzanine 2.685 11

Venture Capital (SICAR) 8.268 79

Private Equity (SICAR) 46.633 280

TOTAL 4,585.196 14,712

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Breakdown by investment policy Net assets (in bn €)

Number of fund units

Subscriptions (in bn €)

Redemptions (in bn €)

Net subscriptions

(in bn €)

PART I

Fixed-Income Transferable Securities 1,249.362 2,712 65.214 53.079 12.135

Variable-Yield Transferable Securities 1,261.644 3,717 60.739 50.851 9.888

Mixed Transferable Securities 726.127 2,741 23.993 22.437 1.556

Funds of Funds 130.671 889 3.224 2.435 0.789

Money Market Instruments and Other Short-Term Securities

395.978 174 199.858 187.459 12.399

Cash 10.205 15 3.440 3.060 0.380

Futures and/or Options 6.847 51 0.163 0.164 -0.001

Other Assets 2.826 10 0.073 0.048 0.025

SUB-TOTAL PART I 3,783.660 10,309 356.704 319.533 37.171

PART II

Fixed-Income Transferable Securities 16.981 90 0.476 0.460 0.016

Variable-Yield Transferable Securities 16.461 58 0.392 0.196 0.196

Mixed Transferable Securities 53.596 189 1.907 1.466 0.441

Funds of Funds 26.405 225 0.259 0.542 -0.283

Money Market Instruments and Other Short-Term Securities

17.928 34 1.157 1.235 -0.078

Cash 0.000 0 0.000 0.000 0.000

Private Equity 8.242 18 0.047 0.042 0.005

Venture Capital 0.029 1 0.000 0.000 0.000

Real Estate 2.753 6 0.005 0.055 -0.050

Futures and/or Options 1.363 17 0.030 0.040 -0.010

Other Assets 4.102 18 0.082 0.135 -0.053

SUB-TOTAL PART II 147.860 656 4.355 4.171 0.184

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SIF

Fixed-Income Transferable Securities 97.241 425 3.056 3.387 -0.331

Variable-Yield Transferable Securities 59.043 274 0.555 1.732 -1.177

Mixed Transferable Securities 134.987 848 1.284 2.743 -1.459

Funds of Funds 109.295 965 1.396 1.564 -0.168

Money Market Instruments and Other Short-Term Securities

5.514 10 1.333 1.421 -0.088

Cash 0.056 2 0.001 0.000 0.001

Private Equity 35.604 207 0.375 0.492 -0.117

Venture Capital 2.683 28 0.079 0.000 0.079

Real Estate 87.690 315 2.853 0.773 2.080

Futures and/or Options 3.883 35 0.029 0.048 -0.019

Other Assets 59.970 265 0.967 0.570 0.397

SUB-TOTAL SIFs 595.966 3,374 11.928 12.730 -0.802

SICAR

Public-to-Private 0.124 3 0.000 0.000 0.000

Mezzanine 2.685 11 0.000 0.000 0.000

Venture Capital 8.268 79 0.000 0.000 0.000

Private Equity 46.633 280 0.001 0.107 -0.106

TOTAL SICAR 57.710 373 0.001 0.107 -0.106

TOTAL LUXEMBOURG UCIs 4,585.196 14,712 372.988 336.541 36.447

ORIGIN OF THE INITIATORS OF LUXEMBOURG UCIS

Country Net assets (in bn EUR) in %

Number of UCIs in %

Number of fund units in %

US 972.075 21.2% 173 4.7% 1,118 7.6%

GB 781.268 17.0% 255 7.0% 1,576 10.7%

CH 655.166 14.3% 548 14.9% 2,750 18.7%

DE 636.382 13.9% 1,212 33.0% 2,540 17.3%

FR 429.873 9.4% 285 7.8% 1,569 10.7%

IT 322.026 7.0% 138 3.8% 1,259 8.5%

BE 198.553 4.3% 153 4.2% 886 6.0%

LU 155.290 3.4% 251 6.8% 762 5.2%

NL 97.669 2.1% 43 1.2% 255 1.7%

DK 91.662 2.0% 23 0.6% 220 1.5%

OTHERS 245.232 5.4% 588 16.0% 1,777 12.1%

TOTAL 4,585.196 100.0% 3,669 100.0% 14,712 100.0%

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BREAKDOWN OF UCI FUND UNITS REGISTERED IN LUXEMBOURG BY REFERENCE CURRENCY

Currency Net assets (in bn EUR)

in % Number of fund units

in %

AUD 6.166 0.134% 26 0.177%

CAD 2.717 0.059% 21 0.143%

CHF 45.810 0.999% 271 1.842%

CNH 3.489 0.076% 25 0.170%

CNY 1.231 0.027% 4 0.027%

CZK 1.229 0.027% 70 0.476%

DKK 1.777 0.039% 13 0.088%

EUR 2,405.936 52.472% 9,240 62.806%

GBP 157.430 3.433% 319 2.168%

HKD 4.349 0.095% 9 0.061%

HUF 0.341 0.007% 29 0.197%

JPY 54.570 1.190% 187 1.271%

NOK 5.235 0.114% 36 0.245%

NZD 0.769 0.017% 4 0.027%

PLN 0.222 0.005% 9 0.061%

RON 0.482 0.011% 4 0.027%

SEK 40.154 0.876% 131 0.890%

SGD 1.095 0.024% 6 0.041%

TRY 0.004 0.000% 1 0.007%

USD 1,852.170 40.395% 4,306 29.269%

ZAR 0.020 0.000% 1 0.007%

TOTAL 4,585.196 100.000% 14,712 100.000%

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UCIS: SITUATION AS AT 31 JULY 2020

NUMBER OF UCIS

FCP SICAV Other

UCI / SIF SICAR Total

Part I (2010 Law) 897 835 0 0 1,732

Part II (2010 Law) 114 129 2 0 245

FIS 310 1,100 41 0 1,451

SICAR 0 0 0 236 236

Total 1,321 2,064 43 236 3,664

NET ASSETS OF UCIS

FCP SICAV Other

UCI / SIF SICAR Total

Part I (2010 Law) 606.411 3,212.763 0.000 0.000 3,819.174

Part II (2010 Law) 48.612 99.094 0.469 0.000 148.175

SIF 188.480 376.395 30.455 0.000 595.330

SICAR 0.000 0.000 0.000 54.716 54.716

Total 843.503 3,688.252 30.924 54.716 4,617.395

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NET ASSETS BROKEN DOWN BY INVESTMENT POLICY

Breakdown by investment policy Net assets (in bn €)

Number of fund units

Fixed-Income Transferable Securities 1,366.437 3,229

Variable-Yield Transferable Securities 1,358.936 4,063

Mixed Transferable Securities 928.955 3,766

Funds of Funds 268.707 2,077

Money Market Instruments and Other Short-Term Securities 414.813 220

Cash 10.461 17

Private Equity 43.212 223

Venture Capital 2.682 29

Real Estate 90.267 321

Futures and/or Options 11.840 102

Other Assets 66.369 293

Public-to-Private 0.125 3

Mezzanine 1.317 13

Venture Capital (SICAR) 7.466 77

Private Equity (SICAR) 45.808 280

TOTAL 4,617.395 14,713

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Breakdown by investment policy Net assets (in bn €)

Number of fund units

Subscriptions (in bn €)

Redemptions (in bn €)

Net subscriptions

(in bn €)

PART I

Fixed-Income Transferable Securities 1,253.594 2,715 62.303 56.759 5.544

Variable-Yield Transferable Securities 1,283.236 3,730 59.702 52.042 7.660

Mixed Transferable Securities 738.781 2,733 32.242 22.338 9.904

Funds of Funds 132.255 882 2.491 2.292 0.199

Money Market Instruments and Other Short-Term Securities

391.108 177 184.953 179.744 5.209

Cash 10.405 15 3.262 3.109 0.153

Futures and/or Options 6.863 51 0.108 0.095 0.013

Other Assets 2.932 10 0.111 0.032 0.079

SUB-TOTAL PART I 3,819.174 10,313 345.172 316.411 28.761

PART II

Fixed-Income Transferable Securities 16.413 90 0.341 0.648 -0.307

Variable-Yield Transferable Securities 16.835 58 0.533 0.277 0.256

Mixed Transferable Securities 54.559 186 1.801 1.678 0.123

Funds of Funds 26.322 224 0.181 0.337 -0.156

Money Market Instruments and Other Short-Term Securities

17.829 33 1.812 1.304 0.508

Cash 0.000 0 0.000 0.000 0.000

Private Equity 8.107 18 0.022 0.031 -0.009

Venture Capital 0.027 1 0.000 0.000 0.000

Real Estate 2.753 6 0.000 0.000 0.000

Futures and/or Options 1.213 17 0.006 0.182 -0.176

Other Assets 4.117 18 0.068 0.034 0.034

SUB-TOTAL PART II 148.175 651 4.764 4.491 0.273

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SIF

Fixed-Income Transferable Securities 96.430 424 2.883 3.706 -0.823

Variable-Yield Transferable Securities 58.865 275 0.424 0.717 -0.293

Mixed Transferable Securities 135.615 847 2.205 1.838 0.367

Funds of Funds 110.130 971 2.538 1.084 1.454

Money Market Instruments and Other Short-Term Securities

5.876 10 0.932 0.551 0.381

Cash 0.056 2 0.001 0.000 0.001

Private Equity 35.105 205 0.629 0.182 0.447

Venture Capital 2.655 28 0.010 0.018 -0.008

Real Estate 87.514 315 0.616 0.454 0.162

Futures and/or Options 3.764 34 0.055 0.233 -0.178

Other Assets 59.320 265 0.852 0.715 0.137

SUB-TOTAL SIFs 595.330 3,376 11.145 9.498 1.647

SICAR

Public-to-Private 0.125 3 0.000 0.000 0.000

Mezzanine 1.317 13 0.000 0.000 0.000

Venture Capital 7.466 77 0.002 0.000 0.002

Private Equity 45.808 280 0.035 0.000 0.035

TOTAL SICAR 54.716 373 0.037 0.000 0.037

TOTAL LUXEMBOURG UCIs 4,617.395 14,713 361.118 330.400 30.718

ORIGIN OF THE INITIATORS OF LUXEMBOURG UCIS

Country Net assets (in bn EUR) in %

Number of UCIs in %

Number of fund units in %

US 972.025 21.1% 172 4.7% 1,121 7.6%

GB 789.260 17.1% 253 6.9% 1,570 10.7%

CH 653.388 14.1% 550 15.0% 2,745 18.7%

DE 644.538 14.0% 1,205 32.9% 2,537 17.2%

FR 435.801 9.4% 284 7.7% 1,574 10.7%

IT 323.842 7.0% 138 3.8% 1,257 8.5%

BE 200.984 4.4% 153 4.2% 878 6.0%

LU 158.448 3.4% 253 6.9% 775 5.3%

NL 98.594 2.1% 43 1.2% 257 1.7%

DK 93.313 2.0% 23 0.6% 219 1.5%

OTHERS 247.202 5.4% 590 16.1% 1,780 12.1%

TOTAL 4,617.395 100.0% 3,664 100.0% 14,713 100.0%

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BREAKDOWN OF UCI FUND UNITS REGISTERED IN LUXEMBOURG BY REFERENCE CURRENCY

Currency Net assets (in bn EUR)

in % Number of fund units

in %

AUD 6.284 0.136% 26 0.177%

CAD 3.258 0.071% 20 0.136%

CHF 45.318 0.982% 271 1.842%

CNH 4.123 0.089% 25 0.170%

CNY 1.506 0.033% 4 0.027%

CZK 1.241 0.027% 70 0.476%

DKK 1.827 0.040% 13 0.088%

EUR 2,433.836 52.710% 9,240 62.802%

GBP 161.934 3.507% 322 2.189%

HKD 4.111 0.089% 9 0.061%

HUF 0.346 0.008% 28 0.190%

JPY 51.747 1.121% 187 1.271%

NOK 5.362 0.116% 36 0.245%

NZD 0.755 0.016% 4 0.027%

PLN 0.222 0.005% 8 0.054%

RON 0.483 0.010% 4 0.027%

SEK 41.895 0.907% 131 0.890%

SGD 1.070 0.023% 6 0.041%

TRY 0.004 0.000% 1 0.007%

USD 1,852.052 40.110% 4,307 29.273%

ZAR 0.021 0.000% 1 0.007%

TOTAL 4,617.395 100.000% 14,713 100.000%

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PROSPECTUSES TO BE PUBLISHED WHEN SECURITIES ARE OFFERED TO THE PUBLIC OR ADMITTED TO TRADING ON A REGULATED MARKET

CSSF APPROVALS

In July 2020, the CSSF approved a total of 120 documents pursuant to the Prospectus Regulation, which break down as follows:

base prospectuses: 65 (54.17%)

other prospectuses: 25 (20.83%)

registration documents:

4 (3.33%)

supplements: 26 (21.67%)

NOTIFICATIONS RECEIVED BY THE CSSF FROM THE COMPETENT AUTHORITIES OF OTHER EEA MEMBER STATES

In July 2020, the CSSF received 27 notifications relating to prospectuses and base prospectuses and 38 notifications relating to supplements from competent authorities of other EEA Member States.

020406080

100120140160180200

JULY

19

AU

G.

19

SEP

T. 1

9

OCT.

19

NO

V.

19

DEC

. 19

JAN

. 20

FEB.

20

MAR.

20

APR

. 20

MAY

20

JUN

E 20

JULY

20

Num

ber

Files approved

0

10

20

30

40

50

60

70

JULY

19

AU

G.

19

SEP

T. 1

9

OCT.

19

NO

V.

19

DEC

. 19

JAN

. 20

FEB.

20

MAR.

20

APR

. 20

MAY

20

JUN

E 20

JULY

20

Num

ber

Notifications received

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 20

NOTIFICATIONS SENT BY THE CSSF TO COMPETENT AUTHORITIES OF OTHER EEA MEMBER STATES

In July 2020, the CSSF sent 55 notifications relating to prospectuses and base prospectuses, 1 notification relating to registration documents and 13 notifications relating to supplements to the competent authorities of other EEA Member States1.

ISSUERS OF SECURITIES WHOSE HOME MEMBER STATE IS LUXEMBOURG PURSUANT TO THE LAW OF 11 JANUARY 2008 ON TRANSPARENCY REQUIREMENTS FOR ISSUERS (THE "TRANSPARENCY LAW") Since 30 June 2020, four issuers have chosen Luxembourg as home Member State for the purposes of the Transparency Law. Moreover, three issuers were deregistered from the list due to the fact that they no longer fall within the scope of the Transparency Law.

As at 31 July 2020, 440 issuers subject to the supervision of the CSSF were included in the list of issuers whose home Member State is Luxembourg pursuant to the Transparency Law.

1 These figures are the number of prospectuses, base prospectuses, registration documents and supplements for which the CSSF sent one or several notifications. Where notifications were sent at different dates and/or in several Member States, only the first notification is included in the statistical calculation. Each document notified in one or several Member States is thus only counted once.

0

10

20

30

40

50

60

JULY

19

AU

G.

19

SEP

T. 1

9

OCT.

19

NO

V.

19

DEC

. 19

JAN

. 20

FEB.

20

MAR.

20

APR

. 20

MAY

20

JUN

E 20

JULY

20

Num

ber

Notifications sent

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 21

PENSION FUNDS As at 31 July 2020, 11 pension funds in the form of pension savings companies with variable capital (SEPCAVs) and pension savings associations (ASSEPs) were registered on the official list of pension funds subject to the Law of 13 July 2005 on institutions for occupational retirement provision in the form of a SEPCAV and an ASSEP.

On the same date, the number of professionals authorised to act as liability managers for pension funds subject to the Law of 13 July 2005 amounted to 18.

SECURITISATION UNDERTAKINGS The number of securitisation undertakings authorised by the CSSF in accordance with the Law of 22 March 2004 on securitisation amounted to 33 entities as at 31 July 2020.

PUBLIC OVERSIGHT OF THE AUDIT PROFESSION The public oversight of the audit profession covered 55 cabinets de révision agréés (approved audit firms) and 317 réviseurs d'entreprises agréés (approved statutory auditors) as at 31 July 2020. The oversight also included 24 third-country auditors and audit firms duly registered in accordance with the Law of 23 July 2016 concerning the audit profession.

QUARTERLY STATISTICS

MANAGEMENT COMPANIES AUTHORISED ACCORDING TO CHAPTER 15 OF THE 2010 LAW: DECREASE IN THE BALANCE SHEET TOTAL AS AT 30 JUNE 2020

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

JUN

E 17

SEP

T. 1

7

DEC

. 17

MAR. 18

JUN

E 18

SEP

T. 1

8

DEC

. 18

MAR. 19

JUN

E 19

SEP

T. 1

9

DEC

. 19

MAR. 20

JUN

E 20in

mill

ion E

UR

Development of balance sheet total of management companies (Chapter 15)

Balance sheet total

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 22

Human resources In order to increase its staff, the CSSF hired two employees on 1 August 2020 and counts, after the departure of 4 agents, 933 agents (505 men and 428 women). They have been assigned to the following departments:

UCI Departments

Laurène PIET

Innovation, Payments, Market Infrastructures and Governance

Cynthia KOMBE BOSOMBISA

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 23

European/International News in July 2020 Single Supervisory Mechanism (SSM) - European Central Bank (ECB)

Date Publications Description

03.07.2020 Letter from Andrea Enria, Chair of the Supervisory Board, to Mr Zanni, Ms Donato, Mr Grant and Mr Rinaldi, MEPs, on banking supervision

The ECB has published a letter from the Chair of the Supervisory Board to Members of the European Parliament in response to a written request about banking supervision.

07.07.2020 List of supervised entities (as of 1 June 2020)

The ECB has updated the list of supervised entities and supervised groups that are directly supervised by the ECB (“significant supervised entity” and “significant supervised group”, as defined in Article 2, points (16) and (22) of the SSM Framework Regulation). It has also published the list of entities supervised by a national competent authority (NCA).

08.07.2020 ECB publishes guideline on definition of default for banks directly supervised by national supervisors

The ECB published a guideline on the definition of the so-called “materiality threshold” for banks that are directly supervised by national supervisors (ECB/2020/32) in relation to credit obligations past due, following a public consultation. The materiality threshold refers to the point at which a bank decides a debtor is in default on its loan. The new definition specifies how national supervisors should exercise their discretion in this regard.

10.07.2020 ECB establishes close cooperation with Croatia’s central bank

The Governing Council of the ECB has adopted a decision to establish close cooperation with the Croatian National Bank following the fulfilment of the necessary supervisory and legislative prerequisites. In parallel, the inclusion of the Croatian kuna in the Exchange Rate Mechanism II was announced. Together, these two steps pave the way for Croatia’s future participation in the euro area.

10.07.2020 ECB establishes close cooperation with Bulgaria’s central bank

The Governing Council of the ECB has adopted a decision to establish close cooperation with the Bulgarian National Bank following the fulfilment of the necessary supervisory and legislative prerequisites. In parallel, the inclusion of the Bulgarian lev in the Exchange Rate Mechanism II was announced. Together, these two steps pave the way for Bulgaria’s future participation in the euro area.

14.07.2020 Letter from Andrea Enria, Chair of the Supervisory Board, to Mr Schäffler, Member of the German Bundestag, on possible policy responses to the crisis

The ECB has published a letter from the Chair of the Supervisory Board to a Member of the European Parliament in response to a written request about banking supervision.

16.7.2020 Letter from Andrea Enria, Chair of the Supervisory Board, to Ms Ponsatí Obiols, MEP, on banking supervision

The ECB has published a letter from the Chair of the Supervisory Board to a Member of the European Parliament in response to a written request about banking supervision.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 24

21.07.2020 Letter from Andrea Enria, Chair of the Supervisory Board, to Mr Schäffler, Member of the German Bundestag, on banking supervision

The ECB has published a letter from the Chair of the Supervisory Board to a Member of the European Parliament in response to a written request about banking supervision.

23.07.2020 ECB publishes good practices for banks to prepare for benchmark rate reforms

The ECB has published the results of its industry-wide assessment of banks’ preparedness for the benchmark interest rate reforms. While banks are generally well aware of the complexity of the reforms and the challenges involved, their level of preparation leaves room for improvement, according to the survey. Banks are also generally behind schedule in implementing risk mitigation measures.

24.07.2020 Annual report on the outcome of the SREP IT Risk Questionnaire – Feedback to the industry

In the light of the European Banking Authority (EBA) Guidelines on ICT Risk Assessment under the Supervisory Review and Evaluation process (SREP), ECB Banking Supervision together with the National Competent Authorities developed a dedicated SREP IT risk assessment methodology. This includes the IT Risk Questionnaire (ITRQ) as a form of standardised information collection from supervised institutions for the comprehensive assessment of all IT risk areas. This publication presents the key observations and conclusions based on a horizontal analysis of the ITRQ, for which self-assessments were submitted to ECB Banking Supervision in the first quarter of 2019 by the significant supervised institutions.

24.07.2020 ECB publishes supervisory banking statistics for the first quarter of 2020

The ECB published the supervisory banking statistics for the first quarter of 2020.

28.07.2020 ECB extends recommendation not to pay dividends until January 2021 and clarifies timeline to restore buffers

The ECB extended its recommendation to banks on dividend distributions and share buy-backs until 1 January 2021 and asked banks to be extremely moderate with regard to variable remuneration. It also clarified that it will give enough time for banks to replenish their capital and liquidity buffers in order not to act pro-cyclically.

29.07.2020 ECB announces organisational changes to strengthen banking supervision

The ECB announced changes to the organisational structure of its supervisory arm to ensure continued effective and efficient supervision of banks in the euro area and beyond.

30.07.2020 Letter from Andrea Enria, Chair of the Supervisory Board, to Mr Benifei, MEP, on banking supervision

The ECB has published a letter from the Chair of the Supervisory Board to a Member of the European Parliament in response to a written request about banking supervision.

Date Interviews and speeches Description

02.07.2020 Yves Mersch: In the spirit of European cooperation

Introductory remarks by Yves Mersch, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the Salzburg Global webinar.

21.07.2020 Supervisory approach to consolidation

Presentation by Edouard Fernandez-Bollo, Member of the Supervisory Board of the ECB, at an online debate organised by the Florence School of Banking & Finance.

29.07.2020 Andrea Enria: Transcript of the media briefing on July 28, 2020 (with Q&A)

Transcript of media briefing by Andrea Enria, Chair of the Supervisory Board of the ECB, Frankfurt am Main, 28 July 2020.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 25

Date Consultation Description

01.07.2020 ECB launches public consultation on its supervisory approach to consolidation

The ECB published a guide for consultation that aims to clarify its supervisory approach to consolidation projects involving euro area banks. The consultation on the guide ends at midnight CET on 1 October 2020.

European Banking Authority (EBA)

Date Publications Description

01.07.2020 EBA publishes final Guidelines on the treatment of structural FX positions

The aim of these guidelines is to establish a harmonised framework for the application of the structural foreign exchange waiver under Regulation (EU) n° 575/2013, which is aimed to allow its consistent application going forward. The guidelines will be applicable from 1 January 2022, one year later than originally envisaged to ensure that institutions have time to prepare for the introduction of the requirements.

07.07.2020 EBA Banking Stakeholders Group held its first meeting in its new composition

The renewed EBA Banking Stakeholder Group (BSG) following the amendment of Article 37 of the EBA Regulation, was agreed by the EBA on 17 June 2020. The 30 selected members, who started their four-year mandate on 1 July 2020, will provide advice to the EBA on its policy work and must be consulted on technical standards, guidelines and recommendations.

09.07.2020 European Parliament confirms François-Louis Michaud as new EBA Executive Director

After a plenary vote in the European Parliament on 8 July 2020, François-Louis Michaud was confirmed as the new Executive Director of the EBA. François-Louis Michaud, who will serve a five-year renewable term, was selected by the EBA Board of Supervisors from a shortlist of candidates compiled by the EBA Selection Committee.

10.07.2020 EBA publishes phase 2 of its technical package on reporting framework 2.10

The new release of the reporting framework 2.10 is aimed to provide the technical tools and specifications for the implementation of EBA reporting requirements. The package includes the validation rules, the Data Point Model (DPM) dictionary and XBRL taxonomies.

10.07.2020 EBA updates list of correlated currencies

The list is part of the implementing technical standards (ITS) that were drafted for the purposes of calculating the capital requirements for foreign-exchange risk according to the standardised rules. The list was updated according to the procedure and methodology laid down in the ITS and submitted to the European Commission for endorsement.

16.07.2020 EBA supports EU Commission’s actions towards a more sustainable European economy

The EBA has published its response to the European Commission’s consultation on a Renewed Sustainable Finance Strategy. The EBA welcomes the Commission’s efforts to support the transition towards a more sustainable, and resilient EU economy.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 26

22.07.2020 The EBA observes an increase in high earners in 2018 and the persistence of differences in remuneration practices across the EU

The data shows that in 2018, the number of high earners in EU banks receiving a remuneration of more than EUR 1 million increased slightly by 1.58%, from 4,861 in 2017 to 4,938 in 2018. Over a longer period of time, the number of high earners increased significantly (+44.09%), from 3,427 in 2010 to 4,938 in 2018. The average ratio of variable to fixed remuneration for all high earners in the EU/EEA increased over time from 127% in 2014 to 139% in 2018. The observed remuneration levels of high earners reached up to EUR 39 million.

22.07.2020 EBA is looking into ways to reduce reporting costs

As part of its drive for more proportionate regulatory and supervisory framework, the EBA is looking for ways to optimise supervisory reporting requirements and reduce reporting costs for institutions, especially smaller ones. To fulfil this mandate the EBA launched a questionnaire addressed to all European banks and a call for case studies to collect evidence on reporting costs as well as industry views on ways to reduce such costs and make the supervisory reporting more efficient. The EBA expects the responses to the questionnaires and case studies in October 2020.

29.07.2020 The EBA calls on financial institutions to finalise preparations for the end of the transitional arrangements between the EU and UK

The EBA recalls the importance of adequate preparations by financial institutions for the end of the transition period between the EU and UK. The EBA calls on the institutions to finalise the full execution of their contingency plans in accordance with the conditions agreed with the relevant competent authorities and ensure adequate communication to concerned EU customers.

30.07.2020 EBA updates on 2021 EU-wide stress test timeline, sample and potential future changes to its framework

The EBA has agreed on the tentative timeline and sample of the 2021 EU-wide stress test. The exercise is expected to be launched at the end of January 2021 and its results to be published at the end of July 2021.

Date Consultations Description

22.07.2020 EBA consults on draft technical standards on default probabilities and loss given default for default risk model under the internal approach for market risk

The EBA has launched a public consultation on draft Regulatory Technical Standards (RTS) on default probabilities (PDs) and losses given default (LGDs) for default risk model for institutions using the new Internal Model Approach (IMA) under the Fundamental Review of the Trading Book (FRTB). These draft RTS are part of the deliverables included in the roadmap for the new market and counterparty credit risk approaches published on 27 June 2019.

The consultation runs until 22 October 2020.

22.07.2020 EBA consults on Guidelines specifying the conditions for the substitution approach in the context of “tri-party transactions” for large exposures purposes

The EBA has launched a consultation detailing on the three conditions institutions should comply with when they decide to make use of the alternative treatment with regard to tri-party repurchase agreements facilitated by a tri-party agent.

The consultation runs until 22 October 2020.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 27

23.07.2020 EBA consults on technical standards specifying the determination of indirect exposures arising from (credit) derivative contracts underlying a debt or equity instrument for large exposures purposes

The EBA has launched a consultation on draft RTS specifying how institutions should determine exposures arising from derivative and credit derivative contracts not entered directly into with a client but whose underlying debt or equity instrument was issued by a client. These draft RTS will ensure appropriate levels of consistency through different pieces of the regulatory framework for the calculation of exposures for large exposure purposes.

The consultation runs until 23 October 2020.

24.07.2020 EBA consults on technical standards on reporting of MREL decisions

The EBA has launched a public consultation on its draft ITS specifying uniform reporting templates, instructions and methodology for the identification and transmission, by resolution authorities to the EBA, of information on minimum requirements for own funds and eligible liabilities (MREL). This reporting between resolution authorities and the EBA aims to ensure that the EBA has all the necessary information to understand how MREL is set within Member States.

The consultation runs until 24 October 2020.

24.07.2020 EBA consults on estimation of Pillar 2 and combined buffer requirements for the purpose of setting MREL

The EBA has launched a public consultation on its draft RTS specifying the methodology to be used by resolution authorities to estimate the Pillar 2 (P2R) and combined buffer requirements (CBR) at resolution group level for the purpose of setting the MREL under the Bank Recovery and Resolution Directive (BRRD). The estimation of P2R and CBR is necessary for setting MREL when the resolution group perimeter differs significantly from the prudential perimeter at the level of which own fund requirements have been set by the competent authority.

The consultation runs until 24 October 2020.

24.07.2020 EBA consults on technical standards on impracticability of contractual recognition of bail-in

The EBA has launched a public consultation on draft RTS and draft ITS on the impracticability of contractual recognition of write-down and conversion powers and related notifications as laid down in the BRRD. These standards aim at promoting the effective application of resolution powers to banks and banking groups and to foster convergence of practices between relevant authorities and institutions across the EU.

The consultation runs until 24 October 2020.

27.07.2020 EBA consults on technical standards on indirect subscription of MREL instruments within groups

The EBA has launched a public consultation on its draft RTS specifying the methods to avoid that instruments indirectly subscribed by the resolution entity for the purpose of meeting the MREL, applicable to entities that are not themselves resolution entities, hamper the smooth implementation of the resolution strategy. These patterns of indirect subscription are also known as “daisy chains of internal MREL”.

The consultation runs until 27 October 2020.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 28

31.07.2020 EBA and ESMA launch consultation to revise joint guidelines for assessing the suitability of members of the management body and key function holders

The EBA and the European Supervisory Market Authority (ESMA) have launched a public consultation on its revised joint Guidelines on the assessment of the suitability of members of the management body and key function holders. This review reflects the amendments introduced by the fifth Capital Requirements Directive (CRD V) and the Investment Firms Directive (IFD) in relation to the assessment of the suitability of members of the management body.

The consultation runs until 31 October 2020.

31.07.2020 EBA launches consultation to revise its Guidelines on internal governance

The EBA has launched a public consultation to revise its Guidelines on internal governance This review takes into account the amendments introduced by the CRD V and the IFD in relation to credit institutions’ sound and effective governance arrangements.

The consultation runs until 31 October 2020.

European Supervisory Authorities (ESAs)

Date Publication Description

21.07.2020 ESAs notify the European Commission about the outcome of the review of the PRIIPs key information document

The notification of the outcome of the review conducted by the ESAs of the key information document (KID) for packaged retail and insurance-based investment products (PRIIPs) follows the ESAs’ consultation paper published on 16 October 2019 on draft RTS to amend the technical rules on the presentation, content, review and revision of KID (Delegated Regulation (EU) 2017/653).

Basel Committee on Banking Supervision (BCBS)

Date Publications Description

06.07.2020 Basel Committee reports on Basel III implementation progress

The progress report sets out the adoption status of Basel III standards for each BCBS member jurisdiction as of end-May 2020. It includes the Basel III post-crisis reforms published by the Committee in December 2017 and the finalised minimum capital requirements for market risk in January 2019. These reforms will take effect from 1 January 2023.

08.07.2020 BCBS published final revisions to the CVA risk framework

The revisions for the regulatory capital treatment of Credit Valuation Adjustment (CVA) risk include: (i) recalibrated risk weights; (ii) different treatment of certain client cleared derivatives; (iii) an overall recalibration of the standardised and basic approach.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 29

Macroprudential topics and fora

European Systemic Risk Board (ESRB)

Date Publications Description

02.07.2020 ESRB risk dashboard, July 2020 (Issue 32)

The risk dashboard is a set of quantitative indicators and not an early-warning system. The composition and presentation of the ESRB risk dashboard were reviewed in the fourth quarter of 2019. Data available to the ECB by Thursday, 10 June 2020 were taken into account in these statistics.

Countercyclical Capital buffer (CCyB) The list of applicable CCyB rates in EU/EEA countries is available on the website of the ESRB. The following countries have announced a CCyB rate different from 0%:

Country CCyB rate Application since

Bulgaria 0.5% 01.04.2020

Czech Republic 0.5% 01.07.2020

Luxembourg 0.25%

0.5%

01.01.2020

01.01.2021

Norway 1% 13.03.2020

Slovakia 1.5%

1%

01.05.2020

01.08.2020

The list of applicable CCyB rates in non-EU/EEA countries can be consulted on the website of the Bank of International Settlements.

Financial Stability Board (FSB)

Date Publication Description

15.07.2020 FSB Chair’s letter to G20 Finance Ministers and Central Bank Governors: July 2020

In this letter to the G20 Finance Ministers and Central Bank Governors, FSB Chair Randal K. Quarles, notes that the swift intervention of FSB members in response to the COVID pandemic helped to stabilise markets, but the path of recovery is still uncertain. Significant pricing disconnects between the market and economic forecasts, could result in sudden and sharp repricing.

22.07.2020 Stocktake of financial authorities’ experience in including physical and transition climate risks as part of their financial stability monitoring

This stocktake considers financial authorities’ experience of including climate-related risks in financial stability monitoring. It draws on information provided by FSB members, international bodies and a workshop with the private sector.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 30

European Securities and Markets Authority (ESMA)

Date Publication Description

01.07.2020 ESMA updates list of trading venues temporarily exempted from open access under MiFIR

ESMA updated the list of trading venues which have a temporary exemption from the open access provisions under the Markets in Financial Instruments Regulation (MiFIR). The updated list includes an extension of the exemption for five venues until 4 January 2023.

07.07.2020 ESMA publishes updated annual transparency calculations

ESMA made available the updated results of the annual transparency calculations for a limited number of equity and equity-like instruments.

07.07.2020 MIFID II: ESMA issues latest double volume capital data

ESMA updated its public register with the latest set of double volume cap (DVC) data under the Markets in Financial Instruments Directive (MiFID II).

08.07.2020 ESMA updates the CSDR Q&As - July 2020

ESMA updated its Questions and Answers (Q&As) regarding the implementation of the Central Securities Depositories Regulation (CSDR).

08.07.2020 ESMA updates its Q&As on MiFID II and MiFIR transparency (July 2020)

ESMA updated its Q&As regarding transparency issues under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

08.07.2020 ESMA publishes updates to EMIR Q&As (July 2020)

ESMA updated its Questions and Answers document on practical questions regarding data reporting issues, under the European Markets Infrastructure Regulation (EMIR).

08.07.2020 ESMA updates Q&A on MIFIR data reporting

ESMA updated its Questions and Answers on data reporting under the Market in Financial Instruments Regulation (MiFIR).

09.07.2020 ESMA consults on Guidelines on calculation of positions under SFTR

ESMA launched a consultation on draft Guidelines on the calculation of positions by Trade Repositories (TRs) under the Securities Financing Transactions Regulation (SFTR).

The consultation runs until 15 September 2020.

09.07.2020 ESMA highlights further aspects to consider in the finalisation of the framework for third-country CCPs

ESMA published a letter that has been sent to the European Commission (EC) as a contribution to the EC consultation on the delegated acts on tiering, comparable compliance and fees related to third-country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2).

09.07.2020 ESMA updates the ESEF Reporting Manual

ESMA published an update of its Reporting Manual on the European Single Electronic Format (ESEF). The update expands existing guidance and reflects relevant developments in the technical specifications.

10.07.2020 ESMA publishes Guidelines on Securitisation Repository Data Completeness and Consistency Thresholds

ESMA published its final report on the Guidelines on securitisation respository data completeness and consistency thresholds. The Guidelines provide clarity for market participants and securitisation repositories (SRs) on the accepted levels of No-Data (ND) options contained in the securitisation data submitted to SRs.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 31

10.07.2020 ESMA updates its opinion on ancillary activity calculations

ESMA published an updated Opinion on ancillary activity calculations. The opinion provides the estimation of the market size of commodity derivatives and emission allowances for 2019.

13.07.2020 ESMA’s third EU-wide CCP stress test finds system resilient to shocks

ESMA published the results of its third stress test exercise regarding Central Counterparties (CCPs) in the European Union (EU) which confirm the overall resilience of EU CCPs to common shocks and multiple defaults for credit, liquidity and concentration stress risks.

13.07.2020 ESMA issues second report on sanctions under MiFID II

ESMA published its second report on sanctions and measures imposed under the Markets in Financial Instruments Directive (MiFID II) by National Competent Authorities (NCAs).

13.07.2020 ESMA - SFTR reporting regime sees successful first day

ESMA received reports from trade repositories (TRs) indicating that the first day of reporting by financial and no-financial market participants under the Securities Financing Transactions Regulation (SFTR), has gone smoothly.

15.07.2020 ESMA promotes consistent application of prospectus disclosure requirements

ESMA published its final Guidelines on disclosure requirements under the Prospectus Regulation.

15.07.2020 ESMA to assess German financial reporting system following Wirecard collapse

ESMA is to launch an assessment of the supervisory response in the financial reporting area by BaFin and the Financial Reporting Enforcement Panel (FREP) to the events leading to the collapse of Wirecard AG. It will be completed by 30 October 2020.

15.07.2020 ESMA publishes results of the annual transparency calculations for non-equity instruments

ESMA made available the results of the annual transparency calculations for non-equity instruments, which will apply from 15 September 2020. These calculations include the liquidity assessment and the determination of the pre- and post-trade size specific to the instruments and large in scale thresholds.

16.07.2020 ESMA publishes its first Review Reports on the MiFIR transparency regime

ESMA published two final Reports reviewing key provisions of the MiFID II/MiFIR transparency regime.

16.07.2020 ESMA responds to European Commission consultation on Renewed Sustainable Finance Strategy

ESMA submitted a response to the European Commission’s (EC) consultation on the renewed sustainable finance strategy. The response covers a broad range of topics from strengthening the foundations for sustainable finance, increasing opportunities for citizens, financial institutions and corporates to have a positive impact on sustainability, to managing and reducing risks relating to environmental, social and governance (ESG) factors.

16.07.2020 ESMA publishes translations for Guidelines on liquidity stress testing in UCITS and AIFs

ESMA issued the official translations of its guidelines on standardised procedures and messaging protocols.

17.07.2020 ESMA provides guidance on waivers from pre-trade transparency

ESMA published an opinion providing guidance on pre-trade transparency waivers for equity and non-equity instruments. The document replaces the guidance of the Committee of European Securities Regulators and ESMA’s opinions on waivers from pre-trade transparency under the Market in Financial Instruments Directive (MiFID) I.

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 32

17.07.2020 ESMA tells market participants to continue preparations for the end of the UK transition period

ESMA urges financial market participants to finalise preparations and implement suitable contingency plans in advance of the end of the United Kingdom’s (UK) transition period on 31 December 2020. ESMA also confirms that previously agreed Memoranda of Understandings (MoUs) on cooperation and information exchange concluded with the UK’s Financial Conduct Authority (FCA) remain valid and will come into effect at the end of the transition period.

23.07.2020 ESMA publishes the MiFID/MiFIR Annual Review Report

ESMA published the MiFID/MiFIR Annual Review Report under Commission Delegated Regulation (EU) 2017/583 (RTS 2). This report lays down the thresholds for the liquidity criterion 'average daily number of trades' for bonds, as well as the trade percentiles.

28.07.2020 ESMA updates transparency opinions for 3rd country venues

ESMA updated the list of third-country venues (TCTV) in the context of the opinion on post-trade transparency under MiFIR, following new requests from the industry.

28.07.2020 ESMA submits opinion to European Parliament on 2018 discharge process

ESMA submitted an Opinion on the European Parliament’s (EP) observations made in the 2018 discharge process. The Opinion sheds light on concrete actions taken by ESMA, including in relation to supervisory fees for credit ratings agencies and trade repositories, establishing the Proportionality Committee, on investigating dividend arbitrage trading schemes.

31.07.2020 ESMA withdraws registration of NEX Abide Trade Repository AB

ESMA has withdrawn the trade repository (TR) registration of NEX Abide Trade Repository AB (NATR).

NATR has been registered as a TR since 24 November 2017.

The withdrawal decision follows the official notification to ESMA by NATR of its intention to renounce its registration as a TR under the conditions set out in Article 71(1)(a) of EMIR.

31.07.2020 ESMA makes new bond liquidity data available

ESMA made available new data for bonds subject to the pre- and post-trade requirements of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) through its data register.

31.07.2020 ESMA publishes data for the systematic internaliser calculations for equity, equity-like instruments, bonds and other non-equity instruments

ESMA published data for the systematic internaliser quarterly calculations for equity, equity-like instruments, bonds and, for the first time, for other non-equity instruments under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

Commission de Surveillance du NEWSLETTER NO 235 AUGUST 2020 Secteur Financier page 33

Financial centre Main updated figures regarding the financial centre

Annual comparison

Banks Number (31/07/2020) 128 3 entities

Balance sheet total (31/03/2020) EUR 912.444 bn EUR 90.653 bn

Profit before provisions (31/03/2020) EUR 1.242 bn EUR 230 m

Payment institutions Number (31/07/2020) 14 3 entities

Electronic money institutions Number (31/07/2020) 10 1 entity

UCIs Number (31/07/2020) Part I 2010 Law: 1,732 56 entities

Part II 2010 Law: 245 40 entities

SIFs: 1,451 42 entities

TOTAL: 3,428 138 entities

Number (31/07/2020) SICAR: 236 26 entities

Total net assets (30/06/2020) EUR 4,585.196 bn EUR 173.808 bn

Management companies (Chapter 15) Number (31/07/2020) 191 14 entities

Balance sheet total (30/06/2020)2 EUR 15.762 bn EUR 1.435 bn

Management companies (Chapter 16) Number (31/07/2020) 158 6 entities

AIFMs Number (31/07/2020) 258 5 entities

Pension funds Number (31/07/2020) 11 1 entity

Authorised securitisation undertakings

Number (31/07/2020) 33 1 entity

Investment firms Number (31/07/2020) 99 2 entities

Balance sheet total (30/06/2020) EUR 1.973 bn EUR 541 m

Provisional net profit (30/06/2020) EUR 63.48 m EUR 2.17 m

Specialised PFS Number (31/07/2020) 100 8 entities

Balance sheet total (30/06/2020) EUR 6.191 bn EUR 1.158 bn

Provisional net profit (30/06/2020) EUR 44.55 m EUR 191.389 m

Support PFS Number (31/07/2020) 71 4 entities

Balance sheet total (30/06/2020) EUR 1.837 bn EUR 221 m

Provisional net profit (30/06/2020) EUR 30.49 m EUR 7.72 m

Issuers of securities whose home Member State is Luxembourg pursuant to the Transparency Law

Number (31/07/2020) 440 27 entities

Public oversight of the audit profession

Number (31/07/2020) 55 cabinets de révision agréés 5 entities

317 réviseurs d’entreprises agréés 1 person

24 third-country auditors and audit firms no variation

Employment (31/03/2020) Banks3 26,390 people 239 people

Management companies (Chapter 15)4 4,903 people 96 people

Investment firms 1,709 people 770 people

Specialised PFS 5,238 people 588 people

Support PFS 10,078 people 118 people

Payment institutions/electronic money institutions

605 people N/A

Total 48,923 people 443 people5

2 Preliminary figures 3 Preliminary figures 4 Preliminary figures 5 This development does not mean a net creation or loss of jobs, but includes the transfer of existing jobs from the non-financial sector to the financial sector and vice versa.